Claims: payment of credit
Set off against other liabilities
Any amount of film tax credit to which a film production company (FPC) is entitled, and which it claims, must be paid to it except that:
- if the FPC owes Corporation Tax, then the credit (and any interest due to the company) may be used to offset the liability;
- if the FPC has outstanding or purported liabilities for PAYE, deductions under section 966 ITA2007 (visiting performers) or Class 1 national insurance contributions for the period for which the credit is owed, then no payment need be made; and
- if the FPC’s Corporation Tax return for the period in question is enquired into by HMRC, then no payment need be made, but a provisional partial payment may be made if appropriate.
S130 FA2008 also allows HMRC to offset a credit against any existing debt. This is regardless of whether the payment falls within the same accounting period.
Payment of film tax credit will carry interest from the later of:
- the filing date for the FPC’s tax return for the period in relation to which the credit is payable, and
- the date on which the tax return (or amended return) in which the claim is included was delivered to HMRC.